Conference files, lot 59 D 95, CF 100
No. 339
Memorandum by the Ambassador to
the United Kingdom (Gifford) of a Dinner Meeting at the British
Embassy, January 7, 1952
I was located too far away to hear all the conversation that went on between the President, Mr. Churchill and Mr. Acheson, but what I heard was not about serious matters but only friendly dinner-table conversation. After dinner the body broke up into small groups, in one of which Mr. Wilson brought up the subject of U.S. purchases of military items from Great Britain, particularly [Page 774] mentioning the possible purchase of Canberra’s. He thought that if it were possible to get Canberra’s, they would be cheaper than those made in the U.S. and such purchases would help the dollar balance situation. I referred to the fact that purchase of military equipment from Great Britain by the U.S. had been considered some time ago by the Labor Government and they had been rather against it because it would, if kept up for two or three years, mean giving up regular British exports which they would need to continue in order to hold their position in the competitive market. In other words, at the end of three years, say, the British might find that they had lost some of their export market which they need to continue to exist. I understood that the matter would be further considered and if specific items such as Canberra’s could be worked out, it might be helpful.
Secretary Acheson discussed with Sir Roger Makins, Sir Norman Brook and myself the question of the British bringing pressure on the Benelux to approve the European army project. The Secretary made very strong representations to Sir Roger Makins as to the need for this. Sir Roger expressed some reluctance about using pressure, but I think was impressed with the need of real attention being given to this matter.
When I left, Mr. Churchill was still talking with a group in another part of the room, but I do not know the subject of their conversation. On the whole, I think it was a most attractive social evening with no new matters of interest or importance being brought up.